1.1 A bill for an act
1.2 relating to taxation; individual income; establishing a refundable credit for certain
1.3 teachers; proposing coding for new law in Minnesota Statutes, chapter 290.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [290.0696] TEACHER CREDIT.
1.6 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
1.7the meanings given.
1.8 (b) "Eligible full-year teacher" means an individual who is a kindergarten through grade
1.912 teacher with a teaching position equivalent to at least 0.6 full-time equivalent, and:
1.10 (1) holds a valid Tier 1, Tier 2, Tier 3, or Tier 4 teaching license issued by the Professional
1.11Educator Licensing and Standards Board under section 122A.18; and
1.12 (2) completes at least 150 student contact days of teaching service each school year,
1.13excluding days devoted to parent-teacher conferences, teachers' workshops, other staff
1.14development opportunities, and days on which a teacher is absent from school.
1.15 (c) "Eligible part-year teacher" means an individual who is a kindergarten through grade
1.1612 teacher with a teaching position equivalent to at least 0.6 full-time equivalent, and:
1.17 (1) holds a valid Tier 1, Tier 2, Tier 3, or Tier 4 teaching license issued by the Professional
1.18Educator Licensing and Standards Board under section 122A.18; and
1.19 (2) completes at least 75, but fewer than 150, student contact days of teaching service
1.20each school year, excluding days devoted to parent-teacher conferences, teachers' workshops,
1.21other staff development opportunities, and days on which a teacher is absent from school.
1Section 1.
REVISOR EAP/AD 25-0107712/17/24
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2304
NINETY-FOURTH SESSION
Authored by Norris03/13/2025
The bill was read for the first time and referred to the Committee on Taxes 2.1 (d) "Eligible teacher" means an eligible full-year teacher or eligible part-year teacher.
2.2 (e) "Threshold amount" means:
2.3 (1) $60,000 for an eligible full-year teacher; and
2.4 (2) $30,000 for an eligible part-year teacher.
2.5 (f) "Qualifying wages" means the amount of wages earned as an eligible teacher as
2.6reported under subdivision 3.
2.7 Subd. 2.Credit allowed.(a) An eligible full-year teacher whose qualifying wages are
2.8less than the threshold amount under subdivision 1, paragraph (e), clause (1), is allowed a
2.9credit equal to $15,000.
2.10 (b) An eligible part-year teacher whose qualifying wages are less than the threshold
2.11amount under subdivision 1, paragraph (e), clause (2), is allowed a credit equal to $7,500.
2.12 (c) An eligible full-year teacher or eligible part-year teacher whose qualifying wages
2.13exceed the threshold amount is allowed a credit equal to $2,000.
2.14 (d) In the case of a married couple, each spouse is eligible for the credit in this section.
2.15 Subd. 3.Statement of qualifying wages.By January 15 of each year, an employer of
2.16an eligible teacher must provide a statement to each eligible teacher and submit a copy of
2.17the statement to the commissioner. The statement must be in a form and manner prescribed
2.18by the commissioner. The statement must include the amount of qualifying wages earned
2.19in the previous calendar year by the eligible teacher and the number of student contact days
2.20of teaching service in the previous calendar year by the eligible teacher.
2.21 Subd. 4.Credit refundable; appropriation.If the amount of credit that the claimant
2.22is eligible to receive under this section exceeds the claimant's tax liability under this chapter,
2.23the commissioner shall refund the excess to the claimant. An amount sufficient to pay the
2.24refunds required by this section is appropriated to the commissioner from the general fund.
2.25 Subd. 5.Inflation adjustment.The commissioner of revenue must annually adjust the
2.26threshold amount and the credit amounts in subdivision 2, paragraphs (a) to (c), for inflation,
2.27as provided in section 270C.22. The statutory year is taxable year 2025.
2.28 Subd. 6.Advance payment of credits.(a) The commissioner may establish a process
2.29to allow a taxpayer to elect to receive one or more advance payments of the credit under
2.30this section. The amount of advance payments must be based on the taxpayer's and
2.31commissioner's estimate of the amount of credit for which the taxpayer would be eligible
2.32in the taxable year beginning in the calendar year in which the payments were made. The
2Section 1.
REVISOR EAP/AD 25-0107712/17/24 3.1commissioner must not distribute advance payments to a taxpayer who does not elect to
3.2receive advance payments.
3.3 (b) The amount of a taxpayer's credit under this section for the taxable year is reduced
3.4by the amount of advance payments received by the taxpayer in the calendar year during
3.5which the taxable year began. If the total amount of the advanced payments the taxpayer
3.6received for the taxable year exceeds the credit the taxpayer was eligible to receive for the
3.7taxable year, the taxpayer's liability for tax is increased by the difference between the amount
3.8of advance payments received and the credit amount.
3.9 EFFECTIVE DATE.This section is effective for taxable years beginning after December
3.1031, 2024.
3Section 1.
REVISOR EAP/AD 25-0107712/17/24